NONE: Re: ONLINE-ADS>> branding with banner ads
Re: ONLINE-ADS>> branding with banner ads
Herman Tumurcuoglu (hermant_at_microtec.net)
Mon, 23 Jun 1997 03:16:03 -0400
I want to start by saying happy first to 0-A online. Lots of good
information here.
Since my last post 2 weeks ago I have received over a dozen e-mails
and a few phone calls from people who followed the thread.
In a recent post Dwayne Dear wrote:
> am surprised Mr. Tumurcuoglu has not responded to new posts about
> this issue as he seemed to drive a very strong point across.
The reason I stop posting or replying to the mails I got regarding my
initial post was that I made a promise not to harp on the point.
I want to thank those who supported me and ask them to post their
ideas here on a-o. I know for a fact that there are many interesting
points of view and I am sure that this is a good venue to discuss
such critical issues. I also want to apologize to those who may have felt
targeted by my original post. I was not taking aim at anyone in particular
and my examples where not the best cases by far
(don't have so much time on my hands). It was meant for reflection.
Dwayne put my initial post into perspective. Hope ad agencies
got the point. Branding is only an underlying dimension
of the problem, the real question is who pays for "wasted" banner impressions?
>Having followed the thread I am afraid that these ad agencies are
>insensitive to the bandwidth dimension of
>the analysis. It costs a lot of money to deliver millions
>of banners around the Web. Will these be compensated for by the >advertiser.
Well, what can I say? You only need to look at some responses to my
original post to realize that most media people don't have much
background in running a site or an understanding of Web economics
-- I am not talking about plain economics here Stephanie:).
If they only sat down and talked to their ISP for a few days before working
up a business model. The Commonwealth Network experience has shown that the
more ads you dump the more it will actually cost you
per ad in overhead (higher bandwidth bracket, exponential hardware
requirements, management of more affiliate sites..etc). Impressions must
always be paid for down the line. This is always a good read: The ad
network of the Future (http://www.ca-probate.com/adfuture.htm)
Charging 30 cents a click with poor click trough ratio or a percentage
of sales with low conversion (rate of purchase from visitor) will not lead
to long term growth for any web site, network or agency.
Don't want to preach (so many preachers here) but many
marketers are still not thinking about why they are on the Web
(under these conditions how "effective" can their ads be?). Cutting media
costs is not the answer. Being more effective, that's the
answer. There is a need to go beyond just clicks. An ad
campaign must also include a review or reconstruction of the destination
Web site...could go on and on -- If I could just cut and past my Thesis ;)
I suggest people start by reading "Marketing in Hypermedia Computer
Mediated Environments: Conceptual foundations" by Thomas Novack and Donna
Hoffman.
I am fed up with the attitude of "why do so much creative work when
we can just have twice the ads at half the price at half the
efficiency and the advertiser will be happy". Smaller publishers
will be the ones who pay for such attitude as a "shakeout" occurs...
I have often wanted to start a network for such sites but I'm
so busy with my other operations. I guess in the short run they
would be better off trading banners then selling them at $4 CPM.
----
Herman Tumurcuoglu
Just my 2 cents!
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